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 ~Hot and Steamy News Regarding Mortgages In Mexico~
By Enrique Saldana
First there were 7, and now there is 1.
Yes, back in 2007 we had up to 7 lenders courting American and Canadian Mexico home buyers to purchase their home with a mortgage, and many did. However, little by little some of them were disappearing from the market.
In the end it was a battle for the biggest piece of the market between Compass Bank/BBVA Bancomer, and Scotia Bank Mexico backed by Scotia Bank Canada. A battle according to many that was being won by Compass Bank/BBVA Bancomer. Compass Bank is a USA subsidiary of BBVA Bancomer in the USA. A small bank based out of Laredo, Texas, which expanded through the state of Texas but concentrated mostly on local lending and banking initiatives. Through the support of BBVA Bancomer saw an opportunity to take over the Mexico USD mortgage market.
And take over they did, at least for a while, up to the end of 2011. Why? Because all of a sudden, and without notice, Compass Bank has closed their USD Mexico Bi-national Mortgage Program, as of January 6th, 2012. And although I might be wrong on the exact date, it certainly it has been about a week since the closing of this program has taken place. This information came from reliable sources within Bancomer and Scotia Bank.
So in trying to understand why this has happened, since there is no press release or any further information as to the reason for the closing of the Bi-national Program, I would like to think the following.
Being that Compass Bank is a USA Bank, and considering the uncertainty of the economy in the USA at the present time, it make sense that they would close a program that based on the Secondary Market Mortgage and backed security issues, Compass Bank would reconsider the continuance of the same. Furthermore, the fact that BBVA Bancomer is a Spanish Bank (from Spain), one of the European countries that along with Italy and Greece, to name a few, are presently having serious economic problems, it is also understandable that BBVA Bancomer would also be looking very closely at the Bi-national Mortgage program.
On the other hand, Scotia Bank Mexico, which is a subsidiary of Scotia Bank Canada (although they do not necessarily share the same concepts and information), and being that the Canadian Economy has remained one of the most stable in the world to the present time, it is a natural progression that they would continue with their Home Vacation USD Mortgage Program. Whether or not Scotia Bank Mexico takes advantage of the present situation, of being the only bank providing USD Mortgages to Americans and Canadians purchasing property in Mexico, and take over the market, remains to be seen.
Let’s also not forget that BBVA Bancomer might also come back with a Peso Loan for foreign mortgage market purchasers. Time will tell.
In the meantime, and at the time this article was written, Scotia Bank is your only option for acquiring a UDS Mortgage to purchase a property in Mexico, whether you are an American or Canadian citizen or legal resident of those countries. So take advantage of that opportunity now!!!
For further information, feel free to contact us:
This report courtesy of Enrique (Henry) Saldana-Mexico Realty Solutions www.mexicorealtysolutions.com;
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
; Tel: (984) 147-2388 - Cellular: (984) 111-8743.
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